Research On State-Owned Enterprises With High Leverage,Shadow-Banking Businesses And Crowding Out Effect Of R&D Investment

In recent years,with the increasing downward pressure on the real economy,the profits of companies' main business continue to decline,but the return on financial investment has been increasing.As a result,companies are increasingly keen to develop a "virtual economy" and neglect the main business.This problem is more prominent.State-owned enterprises that should shoulder innovation-driven responsibilities also choose to act as shadow banking to solve the problem of insufficient corporate profits.Compared with shadow banking activities,the profit return of R&D activities has lagging effects and uncertainties.Therefore,the decision-making body of SOEs will increase shadow banking activities and reduce R&D expenditures.The high interest rate contributed by high leverage also encourages state-owned enterprise managers to pursue shadow banking activities with high returns,so as to further squeeze out R&D expenditures of SOEs.As debt can be divided into long-term debt and short-term debt.Therefore,to carry out an empirical test to testify the crowding out effect of investment and R&D on shadow banking activities,and the differences of the effects coming from long term or short term leverage in this regard is beneficial to improve the regulatory system of state finance and capital management so as to provide experimental evidences for the innovation development of state-owned enterprises.This thesis uses the data of non-financial state-owned listed Chinese enterprises from 2007 to 2016 to conduct empirical tests.The results show that the larger the scale of shadow-banking businesses is,the lower the intensity of R&D investment of next year will be.In other words,shadow-banking businesses crowd out R&D investment,and high leverage aggravates this effect.Furthermore,the leverage of short-term debt can reduce that adverse effect to a certain extent.While the leverage of long-term debt will increase the aforementioned crowding-out effect.The main contributions of this thesis are as follows:(1)By examining the impact of state-owned enterprises participating in shadow banking activities on corporate R&D investment,it provides a new perspective for researching the influencing factors of R&D investment and further enriches the existing literature on R&D investment;(2)It can discover the impact mechanism of high leverage on R&D investment to provide empirical evidence for the government to formulate or amend the policy of state-owned enterprises to deleverage.(3)The regulatory role of the Debt Maturity Structure for R&D investment is discovered,providing banks with empirical evidence with adjusting the short-term structure of state-owned enterprise lenders,resolving bank financial risks and corporate financial crisis.